Siemens Gamesa is putting its Fort Madison, Iowa, blade manufacturing plant and Hutchinson, Kansas, nacelle assembly facility in the US into temporary ‘hibernation’, starting in June and July, respectively.
The measures are being taken to address challenges in production demand for the US onshore wind energy market, the manufacturer said.
Employees at both facilities – 171 in Fort Madison and 92 in Hutchinson – will be released from employment during the hibernation.
All affected employees will be provided with a comprehensive separation package, which includes severance pay, benefits continuation, career counselling, resume preparation and job placement assistance, Siemens Gamesa said.
Siemens Gamesa onshore North America chief executive Shannon Sturgil said: “The hibernation of our manufacturing and assembly facilities is an unfortunate but necessary measure to address the current challenges in the US onshore wind market.
“We continue to pursue new orders and remain fully committed to finding a path in support of our Fort Madison and Hutchinson manufacturing facilities.”
Siemens Gamesa said that the patent challenge against features of its onshore wind turbines in 2021 brought by GE had meant that, although the International Trade Commission ultimately ruled in the former’s favour, it had been unable to pursue orders during that period.
Siemens Gamesa aded: “Since then, the US wind market for onshore has slowed in anticipation of new climate legislation and the accompanying renewable energy incentives.
“Combined with long lead times on wind energy projects, these factors have resulted in a ‘production gap’ in 2022.”
Sturgil added: “Our employees have remained professional and committed throughout this challenging time in the US onshore wind market, and I want to thank them for their dedication.
“The hibernation of the two facilities in no way reflects the excellent work done by the teams at those locations.
“We explored many options to address the current shortfall, and ultimately found the hibernation plan to be the most viable option for the long-term success of our manufacturing and assembly plants in the US.”
The company said that the hibernation of the two facilities will have no impact on Siemens Gamesa’s delivery of current onshore contracts, and is entirely unrelated to the company’s offshore wind business, including further development of the Coastal Virginia Offshore Wind commercial project agreements.
It added that Siemens Gamesa remains committed to the US renewable energy market, and to its US workforce.